Canadians may now use their RRSP to purchase a new dream home in Costa Rica. The Canadian Revenue Agency has just confirmed that an RRSP can hold an investment in a mortgage as long as there is sufficient equity in the home and sufficient cash in your self-directed RRSP.
Even if you already have a first mortgage with a financial institution, a second mortgage can still qualify as an eligible investment for your RRSP. Holding a mortgage in your RRSP is incredibly advantageous for Canadians who are interested in retiring in paradise.
Besides enjoying the satisfaction of paying yourself the interest rather than the bank, by using an RRSP to invest in a mortgage, retirees will have a safe and reliable rate of return while the costs to set up the mortgage as well as the interest payments made to the RRSP are generally tax deductible.
To learn more about investing in Costa Rica contact Costa Rica Estates
Costa Rica Estates
Four Seasons Hotel
21 Avenue Road
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